Multi-Unit portfolio’s, contained within one single block impossible to mortgage?
Traditionally, mortgage lenders are very reluctant to offer mortgages or secured funding where they perceive they are exposed to greater risk because they have security over more than one properties in a block i.e. several leases
The lack of appetite to lend in these scenarios together with tightening regulation coupled with significant changes to taxation and allowances for landlords has resulted in some very tough times for property owners, especially those who have high gearing or have their borrowing on a Standard Variable Rate and are looking to remortgage to reduce their out goings or raise capital for essential repairs.
Limit on the size of the advance…
Taking all of the above into account, more and more lenders are “layering” the maximum amount of advance they will make, not only by Loan to Value but by quantum too, which has a double whammy for most portfolio Landlords as they can and are being restricted by both sets of criteria. if not one!!
Centrado seems to have found a much needed solution. Via a private banking partner, multi-unit portfolios are acceptable as security and with rates that are almost attractive as High Street mortgages for standard residential property. In addition the facilities are available up to £25m security as the fund provider recognises just how barren this space is for options for beleaguered property owners and the implications to magnify the shortage of homes if no solution is found.
Solution for every portfolio Landlord then?
No, certainly not. The funding has quite narrow parameter’s and although it can be serviced on an interest only basis the facility is arranged for a maximum of 5 years, but can be offered to both individuals & limited company borrowers too. However, for “mortgage locked” landlords with large portfolios this facility could be a life line if faced with pressure to carry out essential repairs / improvements to ensure the property meets regulatory requirements and is legally habitable.
For more information call Centrado on 0207 096 1733 or enquire via our website.